Tag: mobile ads

Mobile marketing may help Yahoo find more growth

Yahoo has released a report concerning its first quarter earnings of 2013. The report has been highly anticipated among investors due to the promises that have been levied by CEO Marissa Mayer. Mayer was installed as Yahoo CEO in July 2012, but she recently announced plans to renovate the company’s core business by introducing a series of changes, some of which have proven controversial, such as an aggressive ban on telecommuting to work. The report highlights several areas where Yahoo has found success, especially in regards to mobile marketing.

Mayer takes aim at mobile

Mayer has been working to transform Yahoo into a powerful company that could become an essential hub to the online world. Part of the CEO’s initiative is focused on the mobile world, hoping to engage the growing number of consumers that are becoming tethered to mobile devices. To this end, Yahoo has begun putting more focus on mobile marketing, offering better advertising opportunities on its mobile platforms while also working to monetize these platforms more effectively. Mayer’s efforts have been slow-going, but a new Yahoo may be taking shape.

Yahoo finds success on the mobile front

Last quarter, Yahoo posted the first revenue growth it had seen over the past four years, largely due to the revitalization of the company’s core business. This quarter is expected to present similar gains as Yahoo becomes more comfortable in the mobile space. Mobile marketing, in particular, has been growing more important to the advertising business as more consumers gain access to smartphones and tablets. These devices are becoming preferred media consumption platforms, directing a large number of consumers away from traditional PCs and other platforms. Consumers have shown that they are willing to engage in mobile marketing, adding value to mobile advertisements that are becoming more important to companies like Yahoo.

Mobile marketing expected to show strong results

Analysts are expected to dissect Yahoo’s quarterly report throughout the rest of this week. Mobile marketing, along with the companies various other endeavors, are expected to continue showing strong results, but whether these initiatives will provide Yahoo with the longstanding growth has yet to be seen.

Recent research reveals mobile publishers are overtaking mobile advertising networks.

One of the latest reports published by IDC found that social media marketing giants like Facebook, Twitter and Pandora, are now dominating the mobile ad market industry, which was previously controlled by Apple and Google, as well as other large and small mobile ad networks.

The report results show there has been a big shift in mobile advertising.

According to the study, social media marketing claims 52% of the display advertising space. Mobile publishers are no longer taking a backseat to the usual mobile ad frontrunners. Instead, the IDC report shows that they are consistent in their overtaking of the ad market. This is a significant shift in mobile marketing advertising trends.

Mobile advertising networks are anticipated to continue to lose market share to social media marketing.

The report not only highlights that social media marketing publishers are dominating market share, but that is highly likely they will continue to do so. Karsten Weide, IDC’s Vice President of Media & Entertainment, observes that “Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.”

The growth rates of the mobile ad market in the U.S. continue to drop annually. In 2012, the market increased by 88%, which is quite the drop from 2011 when its growth rate had increased by 125%. That being said, despite the decline in market growth, mobile advertising has experienced a major increase in terms of spending. Last year, total spending amounted to $4.5 billion which is significantly larger than the $2.4 billion total in 2011.

In addition, the proption of the market that was represented by mobile from among all online advertising was up from 7% in 2011 to 11% in 2012. As for the future, IDC anticipates a 55% to 65% growth rate for the mobile ad market and for the U.S. to spend about $7 billion in mobile ads.

Based on what was revealed in the report, it appears that with social media marketing gaining a lot of strength, mobile ad networks will need to prepare for stiff competition in the mobile ad market.